Facebook earns $8.8 billion in revenue during Q4 2016

The company notes that mobile advertising revenue made up about 84% of advertising revenue during that quarter

Published Date
02 - Feb - 2017
| Last Updated
02 - Feb - 2017
 
Facebook earns $8.8 billion in revenue during Q4 2016

Facebook announced its quarterly earnings report, revealing that the company generated revenues of $8.8 billion during Q4 2016, a 51 percent increase year-on-year. For the entire year, the company generated $27.6 billion in revenue, which was a 54 percent increase as compared to 2015. Facebook also noted that that mobile advertising revenue made up for about 84 percent of the entire advertising revenue for Q4 2016.

Further, the company revealed that its daily active users (DAUs) were 1.23 billion on average during the quarter. Last quarter, the company had 1.18 billion DAUs. Monthly active users stood at 1.86 billion, an increase of 17 percent year-over-year.

Facebook may also be planning to generate revenue beyond traditional mobile advertising. Recent reports suggest that the company is planning to launch a video-centric app for TV set-top boxes, including Apple TV. This move will give Facebook a new vehicle for generating revenue from video advertising. The company is said to be in discussions with media companies to license long form TV-quality programming. An app for set-top boxes will give it a natural way to distribute that content. Previous reports have also suggested that the company may be testing a mid-roll ad format. This would give video publishers the chance to insert advertisements in the middle of their videos. Facebook would get sell the ads and share revenue with publishers.

Shrey PachecoShrey Pacheco

Writer, gamer, and hater of public transport.